if you have an approved short sale waiting for a buyer will the bank now cancel the short sale approval and dump the loan on the feds?
Will they dump the loan for the amount owed on the loan or the lower agreed upon short slae price ?
Anyone care to comment ?..will an approved short sale on a second home be included in the principal reduction program
I to would like to know how this will effect the short side of the business. I think it will be harder to get them done at :bangheada profit.
No one knows for sure. We just have to wait and find out.
This is my first post. I think it deserves a CHEERS. :beer
The bailout doesn’t bailout homeowners. It only bailsout wallstreet/investors who are holding the bonds securing the mortgages that are in default. That being the case, homeowners will continue to foreclose and short sales will still continue to be done. If anything the baillout will give us more time to do what we do. Which is short sale properties. Bailout or not, it doesn’t make people behind on payments not being late anymore.
Exactly right “theInvestorAcademy” it will only prolong the short sale market - actually I think it will probably drive the foreclosure market to double. Great for people like us who work these markets but personally I would not wish this to happen. It will get scary. More jobs will be lost which means more people will not be able to afford their mortgage which means they will foreclose and ultimately means more short sales. It will be a complete mess. As it is now for example, I have 750k homes that are only worth 400k in today’s market and will probably drop to 200k in the next year - I’m only guessing - and I can’t imagine what will happen to those neighborhoods. As it is, the poorer neighborhoods are becoming a loiters heaven. They don’t even have to break into the vacant homes anymore - the doors are left open - they come in and take the appliances, rip through dry wall to take any wiring or cooper piping if any, they even take the darn kitchen cabinets - these houses are being stripped. I’ve had more than enough people in these neighborhoods call us from our signs to report this stuff. And it will only get worse - and as people become more desperate it will only get worse. And there isn’t even anything to help the investment properties or 2nd home owners - even though they are not primary residences - in a lot of bigger cities- not having a resolution to these property types will be a whole other can of worms.
I will tell you what I was told and that was a quess from someone in Phila. Since the Feds bailed out the mortgage companies he felt it would take a couple of months before the money actually got to the lenders and they, being the Feds would take over the assets. This person worked at a Bank in their REO department and he was confussed himself on how this process was going to work.
So I know you are still as confussed as I.
As it is now for example, I have 750k homes that are only worth 400k in today’s market and will probably drop to 200k in the next year - I’m only guessing - and I can’t imagine what will happen to those neighborhoods. As it is, the poorer neighborhoods are becoming a loiters heaven. They don’t even have to break into the vacant homes anymore - the doors are left open - they come in and take the appliances, rip through dry wall to take any wiring or cooper piping if any, they even take the darn kitchen cabinets - these houses are being stripped. I’ve had more than enough people in these neighborhoods call us from our signs to report this stuff. And it will only get worse - and as people become more desperate it will only get worse.